Abridged Audited Results for the Year Ended 31 December 2015 - DBXJP The db X-trackers Collective Investment Scheme db x-trackers MSCI Japan Trust JSE code: DBXJP ISIN: ZAE000115176 A portfolio in the db x-trackers Collective Investment Scheme (db x- trackers), registered as such in terms of the Collective Investment Schemes Control Act, 45 of 2002 (CISCA) ABRIDGED AUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2015 STATEMENT OF COMPREHENSIVE INCOME for the year ended 31 December 2015 2015 2014 R R Revenue 30 770 615 35 444 385 Investment income 12 413 809 7 292 884 Net fair value gain on investments at fair value through profit or loss 18 356 806 28 151 501 Expenses (4 569 786) (2 809 073) Management and administrative expenses (4 569 772) (2 809 073) Foreign exchange loss on dividends (14) - Operating profit before distribution 26 200 829 32 635 312 Comprising: Income available for distribution before tax 7 844 023 4 483 811 Capital gain retained 18 356 806 28 151 501 Distributions (6 119 364) (3 215 395) Increase in net assets attributable to holders of redeemable securities before tax 20 081 465 29 419 917 Withholding tax (1 740 064) (1 145 180) Increase in net assets attributable to holders of redeemable securities 18 341 401 28 274 737 STATEMENT OF FINANCIAL POSITION at 31 December 2015 2015 2014 R R Assets Listed investments held at fair value through profit or loss 871 324 964 376 404 888 Trade and other receivables 980 461 395 277 Cash and cash equivalents 6 741 460 2 790 063 Total assets 879 046 885 379 590 228 Liabilities Net assets attributable to holders of redeemable securities 872 267 934 376 814 573 Trade and other payables 6 778 951 2 775 655 Total liabilities 879 046 885 379 590 228 STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE SECURITIES for the year ended 31 December 2015 Total R Balance at 1 January 2014 362 975 461 Increase in net assets attributable to holders of 28 274 737 redeemable securities Foreign currency translation adjustments (14 435 625) attributable to redeemable securities Balance at 31 December 2014 376 814 573 Increase in net assets attributable to holders of 18 341 401 redeemable securities Creation of redeemable securities 269 356 090 Foreign currency translation adjustments attributable to redeemable securities 207 755 870 Balance at 31 December 2015 872 267 934 STATEMENT OF CASH FLOWS for the year ended 31 December 2015 2015 2014 R R Cash utilised by operations (344 861) (1 177 996) Dividends received 10 770 658 7 212 207 Management fees paid (2 550 358) (2 704 893) Interest received 517 300 Net cash inflow from operating activities 7 875 956 3 329 618 Cash outflow from investing activities (268 807 401) (126 026) Purchase of listed investments (268 807 401) (126 026) Cash inflow/(outflow)from financing activities 264 882 842 (3 303 208) Proceeds on creation of redeemable securities 269 356 090 - Distributions paid to investors (4 473 248) (3 303 208) Net increase/(decrease) in cash and cash equivalents 3 951 397 (99 616) Cash and cash equivalents at the beginning of year 2 790 063 2 889 679 Cash and cash equivalents at the end of year 6 741 460 2 790 063 2015 2014 Number Number db x-trackers MSCI Japan redeemable securities in issue 72 000 000 45 000 000 In terms of the Trust Deed and CISCA, the Trust is required to pay the net asset value attributable to investors on redemption of securities. Vested income beneficiaries include all holders of db x-trackers MSCI Japan redeemable securities. Creations and redemptions There were 27 000 000 (2014: Nil) creations during the year amounting to a value of R269 356 090 (2014: Nil). There were no redemptions during the current or prior year. Distributions The Trust effects semi–annual distributions. All distributions are made out of the income of the MSCI Japan Trust. The rebates represent an investor’s partial reduction of the 85.5 basis point management fee charged (2014: 85.5 basis point management fee charged). The rebate is calculated using a sliding scale depending on the size of the investor’s investment. During the year under review, the following distributions were effected per db x-trackers MSCI Japan Redeemable Security: 2015 2014 R R Declared distributions (5 399 761) (2 963 464) 0.03896 Rand per security Declared June 2015 and paid July 2015 (2 571 340) 0.03933 Rand per security Declared June 2014 and paid July 2014 (1 769 677) 0.42520 Rand per security Declared December 2015 and paid January 2016 (2 828 421) 0.02653 Rand per security Declared December 2014 and paid January 2015 (1 193 787) Management fees refunded during the year as a rebate distribution (719 603) (251 931) Total distribution expense for the year (6 119 364) (3 215 395) Total Expense Ratio (TER) The TER represents the total expense to the Trust. The only expense to the Trust is the management fee payable to the Manager which is calculated at 0.855% of the assets under management on a daily basis (2014: 0.855% of assets under management). The Trust had a TER of 85.5 basis points (2014:85.5 basis points). Increased consumer demand for greater transparency in financial services and the recognition thereof by the collective investment industry requires Collective Investment Scheme (CIS) managers to calculate and publish a total expense ratio for each Portfolio under their management. This is a requirement in terms of the Association for Savings and Investments South Africa (ASISA) standard on the calculation and publication of total expense ratios. Statement of compliance The information in the summarised report has been extracted from the audited annual financial statements which have been prepared in accordance with the requirements of the JSE Listing Requirements for abridged reports, and the requirements of CISCA in order to meet the requirements of the Trust Deed approved by the Financial Services Board. The listing requirements require abridged reports to be prepared in accordance with the framework concepts and the measurement and recognition of International Financial Reporting Standards (IFRS) and the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and the Financial Reporting Pronouncements as issued by Financial Reporting Standards Council and to also, as a minimum contain the information required by IAS 34 Interim Financial Reporting. This announcement does not include the information required pursuant to paragraph 16A(j) of IAS 34. The full report is available on the issuer’s website, at the issuer’s registered offices and upon request. These financial statements were authorised for issue by the board of directors of the Manager on 23 March 2016. Accounting policies The accounting policies applied in the preparation of the financial statements from which the summary financial statements were derived are in terms of International Financial Reporting Standards and are consistent with those accounting policies applied in the preparation of the previous annual financial statements. New standards and interpretations not yet adopted The following standards, amendments to standards and interpretations effective for the first time in future accounting periods and which are relevant to the Trust have not been adopted for the reporting periods beginning on or after 1 January 2015: IAS 1: Disclosure Initiative - The amendments provide additional guidance on the application of materiality and aggregation when preparing financial statements. IAS 1 is effective for reporting periods beginning on or after 1 January 2016 and the impact of this standard will be assessed once the standard becomes effective. The Trust will only apply the standard once the standard becomes effective. IFRS 9: Financial Instruments - IFRS 9 deals with classification and measurement of financial assets and financial liabilities. IFRS 9 is effective for reporting periods beginning on or after 1 January 2018 and the impact of this standard will be assessed once the standard becomes effective. The Trust will only apply the standard once the standard becomes effective. IFRS 15: Revenue from Contracts with Customers - IFRS 15 contains a single model that applies to contracts with customers and two approaches to recognising revenue: at a point in time or over time. IFRS 15 is effective for reporting periods beginning on or after 1 January 2018 and the impact of this standard will be assessed once the standard becomes effective. The Trust will only apply the standard once the standard becomes effective. Investment income Investment income comprises: - interest income earned on cash and cash equivalents; - cash equalisation component on creations (at the time of creation it represents the income portion attributable to the net asset value at the time that is payable by the creating party); - dividends from listed equities at fair value through profit or loss. Interest income Interest income is recognised in profit or loss, using the effective interest method taking into account the expected timing and amount of cash flows. Dividend income Dividend income is recognised when the right to receive the payment is established. This is usually the ex-dividend date for quoted equities. Audit report This summarised report is itself not reviewed or audited but is extracted from the underlying audited information. The audited annual financial statements for the year ended 31 December 2015 from which the summarised report has been extracted were audited by KPMG Inc, who expressed an unmodified opinion thereon. A copy of the auditor’s report on the audited annual financial statements is available for inspection at the company’s registered office together with the annual financial statements identified in the respective auditor’s reports. A full copy of these financial statements is available on the db x- trackers website www.dbxtrackers.co.za. Directors’ responsibility The directors take full responsibility for the preparation of the abridged report and confirm that the financial information has been correctly extracted from the underlying annual financial statements. Sponsor Vunani Corporate Finance Trustee Standard Bank of SA Limited Manager db x-trackers Proprietary Limited 31 March 2016 Date: 31/03/2016 12:00:00 Produced by the JSE SENS Department. 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